Earlier this week, Exchequer Chancellor Rishi Sunak stated his plans to make the United Kingdom a hotspot for cryptocurrency activities. However, according to recent reports, the crypto industry in the country feels like the move toward a digital asset economy is the last kick of a dying horse.
What Are Rishi Sunak’s Policies?
In recent events, the British Finance Minister issued the Royal Mint directions to create crypto tokens in a recent policy move. Chancellor Rishi Sunak directed the reforms as a series of steps to make Britain the nucleus of crypto-asset technology.
The government-owned “Royal Mint” instructions are to create an NFT and have it in circulation by the summer. This move comes as a bid for the government to create a sandbox for budding upstarts to develop under government supervision.
Finance Minister Rishi Sunak recently released a public statement that outlined the direction of the British government’s Finance Division. The statement showcases policy directives that task the Royal mint to create and distribute crypto tokens backed by the British currency. The move is cited to explore creating NFTs, improve oversight and create a safe hub for digital innovation and development.
The government company in charge of minting the country’s coins is to complete the creation of a government NFT by June 2022. This move is to piggyback on the features of NFTs to place Britain at the forefront of the cryptocurrency space. The announcement dictated new developments exploiting the stablecoin niche, existing cryptos regulation, staking earnings taxation, and blockchain adoption possibilities.
The UK Government to Launch a Stablecoin
The UK government intends to introduce a stablecoin that can be used to make payments within the jurisdiction. This stablecoin use would be the first of many moves to integrate blockchain technology into the country.
Concerning regulation, the announcement proposes using a code that could be regularly updated. The government also intends to create a framework through which other stablecoins, DOAs, and crypto-assets are regulated. This move will address concerns previously cited that many “financial crime red flags” were going unnoticed. The government states that this move to regulate stablecoins will boost security and push out criminal activities in the crypto sphere.
These policies also include creating the sandbox under government oversight. This space would serve to help upstarts flourish in a conducive environment. By providing oversight, crypto’s volatility and security issues would be promoted. Taxation was also to be conducted following open consultations with a government board developed for oversight.
Following the announcement of the introduction of these policies, the move had resulted in some opposition from the crypto industry. The recent move to impose a deadline for registration resulted in negatives for the state. Many companies were left in limbo as they were threatened with being shut down. The move prompted many businesses to consider moving abroad. However, despite the threats, the deadline was extended to allow for more assessments of the firms left out.
This stance features changes that experts have cited will bring benefits in the long term. However, the forecast is that the changes will take a positive turn soon. This is a better outlook for the state as Britain was lagging behind due to its previous stance on cryptos.